Quanex cuts 1Q outlook on weaker building market

Quanex Building Products Corp. said it expects to post a bigger-than-anticipated fiscal first-quarter operating loss, citing to a downturn in demand during the latter half of the quarter.

Quanex said late Monday it expects to post a first-quarter operating loss between $12 million and $15 million. Previously, the company expected an operating loss between $7 million and $11 million.

Analysts surveyed by Thomson Reuters expect an operating loss of $12.8 million, on average.

The company said both its engineered products and aluminum sheet products segments will report greater losses than anticipated due to the downturn in U.S. housing starts. Shipped pounds during the quarter at its aluminum sheet segment will be down 35 percent from the fiscal first quarter of 2008, the company said.

Quanex is scheduled to report first-quarter results Feb. 26.

Shares of Quanex closed Monday at $8.34. The stock has fallen 15 percent since the beginning of the year.